[1IP-67] - Streamline Grants with Papaya's Snapshot Integration for 1inch DAO

2.1 General Proposals
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Simple Summary

The previous vote on Snapshot, linked here, saw overwhelming support for our solution; however, we missed reaching the quorum by just 1%. Since then, our solution has evolved into a B2B model with a commission structure for partners. We’re offering 1inch DAO access without any commission.

Papaya will develop a convenient and useful tool for 1inch DAO to stream grants directly from Snapshot. There’s no product like this on the market yet, and you need it. 1inch DAO has distributed over 2 million USD in grants, so you should have an easy way to start grant streaming directly from Snapshot and revoke it if the agreed conditions aren’t met.

Additionally, 1inch will be able to leverage Papaya’s protocol to charge 1inch API subscription payments without our regular 1% volume commission (time unlimited). Our unique algorithm allows collecting payments from millions of users in just one transaction, saving millions of dollars in operational costs, making Papaya the most cost-effective solution on the market.

Abstract

Papaya is a revolutionary crypto payment gateway and money streaming platform, designed to reshape how Web2 and Web3 companies collect and manage payments. Our full suite of products delivers a seamless, cost-effective experience for merchants, payment service providers, and banking systems. Papaya is more than just a payment solution—it’s a breakthrough technology transforming the future of payments.

Key Features:

  • Infinite Scalability: Papaya’s unique technology allows businesses to charge an unlimited number of users with just a single transaction. Whether handling payments for 1 million users or 1 billion, Papaya processes it all within one transaction, providing unmatched scalability without increasing gas fees or operational complexity.
  • Cost-Effective Transactions: With Papaya, users pay gas fees only once when depositing funds into the protocol. All subsequent activities—whether making payments, recurring payments, or streaming money—are gas-free, significantly reducing transaction costs and providing an affordable solution for high-volume businesses.
  • Multi-Chain Integration: Papaya supports leading blockchain networks, including Polygon, BNB Chain (with rapid opBNB integration), Base, Sei, Avalanche, Scroll, Arbitrum, zkSync, Ethereum, and upcoming integrations for TON and Solana. This ensures flexibility and scalability for businesses operating across various ecosystems.
  • Flexible Payment Methods: Papaya enables payments via multiple methods, including USDT, USDC, and PayPal USD, allowing merchants to offer diverse payment options to their customers.

Papaya is driven by a world-class team with deep expertise in payment processing and financial technologies. Our team excels in managing product development, operationalizing business processes, and delivering best-in-class technology solutions to ensure seamless and secure payments. With years of experience in the payment industry, we know exactly how to navigate its complexities, manage merchant relationships, and implement cutting-edge solutions.

Motivation

  • 1inch DAO will have the ability to initiate grant streaming directly from Snapshot after a vote.
  • 1inch DAO will be able to revoke the grant stream and secure their funds from Snapshot if the terms of the agreement are not met.
  • 1inch DAO can also use this tool to pay their contributors. Since large sums are often allocated, it would be better to distribute them in portions and control the process with streaming tool.
  • 1inch will be able to leverage Papaya’s protocol to charge 1inch API subscription payments without our standard 1% transaction volume commission. Our unique algorithm allows collecting payments from millions of users in just one transaction, saving millions of dollars in operational costs, making Papaya the most cost-effective solution on the market.

Specification

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Papaya protocol will be integrated into Snapshot, allowing 1inch DAO to conveniently start grant streaming immediately after a vote.
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When creating a proposal, you specify the recipient’s address, the amount, and the duration of the stream in months.
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The progress of the streaming, including how much has been streamed and how much remains, will be displayed on snapshot.
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A proposal can be created to revoke a previously issued grant if the agreed-upon conditions are not met by the other party.
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After the vote, the grant stream will stop and 1inch DAO will be able to save its funds from unauthorized spending.
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Flow diagram.

Papaya protocol supports multiple use cases:
Grants: Gradual funding with the flexibility to revoke based on performance.
Payrolls: Daily payouts to contributors, ensuring transparency and reducing end-of-month uncertainties. In the case of a long-term contract, 1inch DAO doesn’t need to transfer the entire amount upfront; a stream can be started at the necessary rate.

Rationale

Our primary motivation for developing and launching the Papaya Streams Snapshot Tool is to provide the 1inch DAO with a secure, scalable, and user-friendly solution for managing grant distributions. By using the Papaya protocol, 1inch DAO will be able to distribute grants more efficiently and transparently. Additionally, 1inch can use the Papaya protocol to charge API subscription payments without our standard 1% transaction volume commission. This unique capability allows 1inch to collect payments from millions of users in a single transaction, cutting millions of dollars in annual payment costs.

Considerations

We can develop this product within max 10 months for $200k. Once the product is ready. The implementation of the Papaya protocol will enable 1inch DAO to significantly enhance the transparency and efficiency of grant distribution, ensuring careful use of funds and the ability to revoke streaming grants if conditions are not met. This innovative tool will be developed and ready for use within 10 months, allowing you to quickly start reaping its benefits.

We would like to receive the grant funds to our multisig address 0xEd892bCBf52B4A18e793D66025e64F52dccCd5De through our streaming protocol at app.papaya.finance in USDC. Just set the stream rate to $20k/month (Total 10 months - $200k).

Note: The DAO Operations Multisig: eth:0x45e84e10e8E85c583C002A40007D10629EF80fAF will be used to create the papaya payment stream. Details in this comment.

*From our side, we will recognize that 1inch DAO supported Papaya Finance in its early stage.

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We do not see how this service is worth $200k.

While this is a valuable service, the 1inch DAO is still figuring out its overall Grants Strategy.

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Hey, @sokravtsov, thanks for posting. I personally have a couple issues with this proposal that I want to post here.

Repost Justification

Though it isn’t explicitly forbidden within our governance documentation or [DAO guidelines(https://gov.1inch.community/docs/governance/dao-guidelines), it isn’t encouraged to re-post identical proposals to ones that have already failed to pass. The only exceptions to this have been proposals where something actually went wrong during the voting or execution process (like when Snapshot was having issues in late 2023). There were no voting issues with [1IP-58] – it just failed to achieve quorum.

Also, it looks like the temperature-check vote was created over the weekend and none of the regular voters participated in it (I think they must’ve missed it).

Proposal Critique

  • The DAO is already using Superfluid to successfully stream payments to grantees. You can monitor the active payment streams in this dashboard.

  • The price tag of $200k seems very steep for creating a Snapshot plugin. The DAO recently funded the creation of an entire open-source 1inch UI for $73k, I don’t see how this plugin could possible be worth ~3x the cost of an entire website, or provide ~3x the value to 1inch Network.

  • I think managing the payment streams directly through Snapshot is too clunky and slow to be an effective way to manage grants. Even if we ignore the temperature-check vote, the proposal lifecycle consists of a 5-day Snapshot vote, 3-day bonded escalation game, and 3-day timelock. 11-days minimum.

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Thank you for your feedback! We understand that allocating $200k for this proposal is a significant decision, especially as the 1inch DAO refines its Grants Strategy.

In response, we’ve added an important benefit to the proposal: 1inch DAO will have unlimited access to Papaya’s protocol for managing 1inch API subscription payments, with no commission or time restrictions. This will allow the DAO to collect payments from millions of users in a single transaction, significantly reducing operational costs, which can save millions annually. This added functionality, combined with the grant streaming tool, makes Papaya a powerful and cost-effective solution for the DAO’s long-term needs.

We believe these advantages make our proposal a high-value investment that aligns with 1inch DAO’s goals of efficiency and scalability.

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Thank you for raising these points!

Repost Justification

We recognize that re-posting proposals isn’t encouraged without substantial updates. In this repost, we’ve made notable improvements, primarily offering 1inch the ability to manage API subscription payments via Papaya’s protocol with no commission and no time restrictions. This feature leverages our unique capability to handle payments for millions of users with just one transaction, saving potentially millions in operational costs over time. Given the significant added value, we felt it justified a re-submission.

We also note that the previous vote narrowly missed quorum by only 1%, and our team has since made an effort to incorporate community feedback to clarify the protocol’s cost-effectiveness and unique capabilities.

Proposal Critique

While Superfluid has been used successfully for payment streams, Papaya offers a different and more cost-efficient approach with scalability tailored for high-frequency payments. Our single-transaction structure minimizes gas costs, making it ideal for high-volume, multi-user environments like subscription payments. Moreover, Papaya’s Snapshot integration would allow 1inch DAO to revoke or adjust payments easily based on real-time performance, providing a responsive alternative to locked, upfront grants.

As for the $200k cost, it reflects not just the development of the Snapshot plugin but also the additional API subscription management and scalability benefits that Papaya can uniquely offer. The comparison to the open-source 1inch UI isn’t fully applicable here, as this is a protocol-level integration designed for continuous savings across multiple use cases, not just one-off development.

Regarding the proposal lifecycle timeline, we recognize that governance processes take time. However, a Snapshot-integrated approach allows for high transparency, which can enhance community trust in grant allocations.

We hope these clarifications illustrate the value Papaya’s integration offers in terms of both operational efficiency and scalability for the DAO’s evolving needs.

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We recognize that re-posting proposals isn’t encouraged without substantial updates. In this repost, we’ve made notable improvements, primarily offering 1inch the ability to manage API subscription payments via Papaya’s protocol with no commission and no time restrictions.

The original text that was re-submitted, and voted on in temp check, was identical to the first proposal that failed.

Then it was edited to decrease the price to $120k, then it was edited again to increase the price back to $200k but add the API subscription (current version).

Seeing as there have been substantial edits, I think this should have another temperature check vote.

As for the $200k cost, it reflects not just the development of the Snapshot plugin but also the additional API subscription management and scalability benefits that Papaya can uniquely offer.

1inch DAO doesn’t have an API it sells. This is something that would need to be coordinated with 1inch Labs to see if they’re interested in using it and willing to pay the 100 basis points on tx-volume.

I’m personally against this proposal. It just isn’t worth the $200k of DAO treasury funds. The only part that the DAO could use is the Snapshot plugin, but we’d probably be able to get that built for ~1/10th the cost if we really wanted it.

1 Like